Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $69,825 cash to start the business and received 5,700 shares. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $56,850; amounts due from customers from sales of books, $37,950; property and equipment, $86,250; amounts owed to publishers for books purchased, $13,100; one-year note payable to a local bank for $10,500. No dividends were declared or paid to the shareholders during the year.
Required:
1. Complete the balance sheet at December 31, 2020:
2. Using the retained earnings equation and an opening balance of $0, work backward to compute the amount of net income for the year that ended December 31, 2020.
3. As of December 31, 2020, did most of the financing for assets come from creditors or shareholders?
multiple choice
a. Creditors
b. Shareholders
4. Assuming that Reader Direct generates net income of $5,975 and pays dividends of $2,850 in 2021, what would be the company’s ending Retained Earnings balance at December 31, 2021?
Answers
The company's ending Retained Earnings balance at December 31, 2021, would be $3,125.
Balance Sheet at December 31, 2020
Assets Amount
Cash on hand and in the bank $56,850
Amounts due from customers $37,950
Property and equipment $86,250
Total assets $181,050
Shareholders' Equity
Liabilities and Shareholders' Equity Amount
Notes payable $10,500
Total liabilities $10,500
Common stock ($69,825 x 2) $139,650
Retained earnings
Total shareholders' equity $139,650
Total liabilities and $181,050
shareholders' equity
Using the retained earnings equation and an opening balance of $0, we can calculate the net income for the year:
Retained Earnings (December 31, 2020) = Retained Earnings (Opening balance) + Net Income - Dividends
0 = 0 + Net Income - 0
Net Income = 0
Therefore, the net income for the year that ended December 31, 2020, is $0.
As of December 31, 2020, most of the financing for assets came from shareholders. This is because the total shareholders' equity ($139,650) is greater than the total liabilities ($10,500). The financing from shareholders is represented by the common stock contributed by Ken Young and Kim Sherwood.
To calculate the ending Retained Earnings balance at December 31, 2021, we need to consider the net income and dividends for the year:
Retained Earnings (December 31, 2021) = Retained Earnings (Opening balance) + Net Income - Dividends
Retained Earnings (December 31, 2021) = $0 + $5,975 - $2,850
Retained Earnings (December 31, 2021) = $3,125
Therefore, the company's ending Retained Earnings balance at December 31, 2021, would be $3,125.
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Related Questions
Why would variables like the job market or financial planning influence a person’s career choice?
Answers
Answer:
Job market and financial are main important factors that influence career choices of a person. There are another several factors that influences such as distance, environment, social and psychological life etc.
Explanation:
When a person start his carrier, he thinks about several factors that effects their carrier choices. There are different factors such as job description, , the skills that essentially required, salary, etc. But there are also another factor that affect the career choice of a person.
These factors are as:
Different roles in lifeWhat is personality of a person and their interest areaIn which field, an individual have an experience.What is their cultural backgroundThe environment of the organization. The economic and social life of the person.What is expectation of salaryThese are the factors that are important to influence the career plan of a person. If a person criteria do not match his expectation related salary, then it will influences their career choices. The distance from home does matter for career choices.
Answer:
The job market and finances are the two most essential aspects that impact a person's career choices. Other aspects that have an impact include distance, environment, social and psychological life, and so on.
Explanation:
Correct on both edge, and edmentum
When a manufacturer saturates the market by selling to any intermediary of good financial standing that is willing to stock and sell the product, the manufacturer is engaged in.
Answers
A scenario where a manufacturer saturates the market by selling to any intermediary of good financial standing is known as intensive distribution.
Who is a manufacturer?It should be noted that a manufacturer simply means an individual who produces goods and services to be used by consumers.
In this case, the situation where where a manufacturer saturates the market by selling to any intermediary of good financial standing is known as intensive distribution.
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What are three purposes of a business presentation?
Answers
Answer:
Businesses and professional firms use presentations to inform, educate, motivate and persuade internal and external audiences.
Explanation:
The main source for recruiting members into the FBLA is through school guidance counselors and teachers.
True
False
Answers
Answer:
That statement is false.
Explanation:
FBLA stands for Future Business Leaders of America. It's an organization that was created to focus on preparing its members for future careers / leaderships position.
Currently, the FBLA recruited most of its members through a campaign that they personally do in campuses. They sent out design posters, flyers, banners, and other advertisement medium to spread awareness of their group/.
Libby is a trainee accountant and has prepared a balance sheet for the accounting year. She valued all the assets of the company at their current
market price. Which accounting principle did she fail to comply with?
А. historical cost
B. accruals
C. matching
D. business entity
E. realization
Answers
Historical cost
Hope this helps!
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150- 0.01 x Demand for an annual printing of this particular product. The fixed costs per year (i.E., per printing) =$50,000 and the variable cost per unit =$40. What is the maximum profit that can be achieved if the maximum expected demand is 6,000 units per year? What is the unit price at this oint of optimal demand?
Answers
Answer:
a. The maximum profit that can be achieved is $300,000.
b. The unit price at this point of optimal demand is $90.
Explanation:
From the question, we can obtain the following:
x = Maximum expected demand = 6,000 units
Price = 150 - 0.01 x = 150 - (0.01 * 6,000) = 150 - 60 = $90
Fixed cost per year = $50,000
Variable cost per unit = $40
Total variable cost = Variable cost per unit * Maximum expected demand = $40 * 6,000 = $240,000
Total cost = Fixed cost + Total variable cost = $50,000 + $240,000 = $290,000
Revenue = Price * Maximum expected demand = $90 * 6,000 = $540,000
Therefore, we have:
a. What is the maximum profit that can be achieved if the maximum expected demand is 6,000 units per year?
Profit = Revenue - Total cost = $540,000 - $240,000 = $300,000
Therefore, the maximum profit that can be achieved is $300,000.
b. What is the unit price at this point of optimal demand?
As already stated above, the following are given in the question:
x = Maximum expected demand = 6,000
Price = 150 - 0.01 x ........................... (1)
Substitute for x in equation (1), we have:
Price = 150 - (0.01 * 6,000) = 150 - 60 = $90
Therefore, the unit price at this point of optimal demand is $90.
A young man is badly injurged when his cell phone battery catches fire. Whattype of insurance should the manufacturer of the cell phone have to cover such an event?
Answers
Answer:
product liability insurance
Explanation:
In this specific situation, the type of insurance that the manufacturer needs to have had is called product liability insurance. This insurance would cover any and all expenses of injuries caused by a specific product that the victim has purchased from you. Which in this case would cover the fire injuries caused by the cell phone that you the manufacturer sold the young man that was injured.
Answer: Product liability insurance
Explanation:
Internet retailers serve a larger geographic area with comparably smaller infrastructure and staff. This fact suggests that internet businesses are more _____.
Answers
Internet businesses are more scalable than traditional brick-and-mortar businesses, as they can serve a larger geographic area with relatively smaller infrastructure and staff.
This scalability is due to the unique characteristics of the internet, which allows businesses to reach a broader customer base while keeping overhead costs low. Internet retailers can offer their products and services 24/7 without the constraints of physical store hours or location, resulting in increased revenue and profitability.
They can also easily expand their reach through digital marketing and social media, providing them with a wider customer base. The ability to reach a larger audience with fewer resources makes internet businesses more efficient and cost-effective, which ultimately contributes to their competitive advantage.
Additionally, internet businesses can adapt quickly to changing market conditions, thanks to the ease and speed of implementing new strategies and technologies.
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You take $200 you had kept under your mattress and deposit it in your bank account. Suppose this $200 stays in the banking system as reserves and banks hold reserves equal to 20 percent of deposits.
The total amount of deposits in the banking system increases by _____ , and the money supply increases by _____.
The total amount of deposits in the banking system increases by 1000 , and the money supply increases by 800.
Reason:
Increase in Deposits = Money Multiplier x Deposit.
=1/Reserve Ratio x Deposit
=1/.20 x $200
= $1000
Because deposits increase by $1,000 but currency declines by $200, this means the money supply increases by $1,000−$200=$800.
Answers
The money supply increases by $800 while the total quantity of deposits in the banking system rises by $1000.
Reserve to Multiplier Ratio
=1/0.2\s= 5
Rise in banking system deposits Equals deposit "multiplier"
We subtract the initial deposits because they are part of the money supply.
Expansion of the money supply additional deposits -new deposits
=1000-200
=$800
=200*5
=$1000
Increase in Deposits = Money Multiplier x Deposit, which equals 1/Reserve Ratio x Deposit, which equals 1/.20 x $200, which is $1000.
Deposits rise by $1,000 while currency drops by $200, which results in an increase in the money supply of $1,000 + $200 = $800.
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which is better McDonalds or burger king?
Answers
Answer:
mc donalds
Explanation:
because its just betta
Answer:it can be answered if you run the numbers of taste every thing on both restaurants menus including every type of drink how well the cartons are how good are their fry's how good is there customer service how fresh is the food and the service time and how healthy is each one once you figure that out you can get this answer but you would have to conduct a survey to do so But the down side is this cant be carried out since neither company's are serving indoors meaning you have to wait out the pandemic and your need permission to conduct this experiment and have the right requirements to conduct such an experiment so until then al answers are currently an opinion not a solid answer
Explanation:
buying a new building increases business
Land/capital
Answers
Answer:
land
Explanation:
why because buying a capital we'll be to much
Management at work you are the proud owner of a small vintage clothing store. your store, fantastic 40s, specializes in clothing from the 1940s. you have four great employees, rebecca, rachel, roberto, and rafael. at first, business was good, but, recently, you have noticed that sales are slipping. puzzled, you turn to your management textbook for some ideas on how to turn things around.
Answers
Answer:
You measure sales over time and realize that the months of July, August, and September are particularly slow. As a result, you ask two of your sales clerks if they would be willing to work part-time during those months. Management Science.
Management science refers solving problems and making decisions in a company in order to move it forward. By preferring solutions to the problem of slow sales over some months, you have engaged in management science.
You make sure that when you hire new people, you get input from each of the existing team members. if they're happy with the new hire, they're more likely to make that person part of the team, and the team will sell more. Humanistic Management Theory.
With Humanistic Management, the needs, wants and thoughts of employees are taken into account when making decisions because employees are not viewed as simple assets to the company but as humans who are complex. By finding out what your employees think of a new hire you are engaging in the Humanistic theory.
You notice that when customers have too many choices, they are less likely to make a decision about what to buy, so you tell all of your employees to bring out only three things at one time. In addition, you start to pay your employees a commission for every item they sell. Classical Management theory.
Classical management is based on certain premises such as the needs of employees being either physical or economic as well as profit maximization. By offering commissions as incentives you are appealing to the economic need of your employees. By engaging in practices aimed at getting people to buy more, you are engaging in profit maximization.
A customer survey shows that the men who come into the store would prefer to be left alone while they shop, but the women who come into the store want to be asked if they need assistance. you tell your employees to leave men alone and ask women if they want help. Contingency Theory.
Contingent Theory shows that for each situation in a company, it is best to manage it based on the internal and external factors affecting it. In this case men don't need help but women prefer it. Offer help to women but not to men. You are therefore basing actions on the factors affecting this situation.
Inland water transport system does not exist in which state?
Answers
Inland water transport systems are used in many states throughout the United States. It is possible that some states may not have as developed or extensive an inland water transport system as others, but it is not accurate to say that any particular state does not have an inland water transport system at all.
Inland water transport systems in the United States generally include rivers, lakes, and canals. These systems are used for a variety of purposes, including transportation of goods, recreation, and hydroelectric power generation. Some examples of states with well-developed inland water transport systems include Minnesota, Arkansas, and Louisiana.
How many days does the pay stub cover?
Answers
Answer:
Pay stubs are usually an extent of 30 days which is a month.
he following information was reported in the December 31, 2018, financial statements of Emma, Inc. (listed alphabetically). Accounts Payable 578 Cash $1003 3115 Common Stock Dividends ? Fuel Expense 291 Interest Expense 598 Notes Payable 237 1631 Retained Earnings (as of January 1, 2018 Service revenue 383 re 5784 Supplies Expense 200 Based on this list of accounts, what is the Retained Earnings as of 12- 31-18? - REB +Net income Di Selected Answer: 383 Correct Answer:
Answers
The value of Retained Earnings as of December 31, 2018 is $783, the correct answer is $783.
The Retained Earnings as of 12- 31-18 is $783 ($583 + $200).Retained earnings is the amount of money that a company retains after paying its dividends.
The value of retained earnings is usually calculated by subtracting the value of dividends paid to stockholders from the value of net income earned by the company over a certain period of time.
Here is a list of the accounts reported in the December 31, 2018, financial statements of Emma, Inc.: Accounts Payable 578Cash $1003Common Stock Dividends ?
Fuel Expense 291Interest Expense 598 Notes Payable 237Retained Earnings (as of January 1, 2018)Service revenue 383re 5784Supplies Expense 200From the information given,
we know that the Retained Earnings as of January 1, 2018 was $583 ($583 + $200) and the Service revenue is $383. So, the Retained Earnings as of 12- 31-18 can be calculated as follows:
REB + Net income – Dividends = Retained Earnings as of December 31, 2018$583 + $383 - Dividends = Retained Earnings as of December 31, 2018 $966 - Dividends = Retained Earnings as of December 31, 2018So, the value of Retained Earnings as of December 31, 2018 is $783 ($966 - $183)Therefore, the correct answer is $783.
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7. As little as
A. 6
B. 2
C. 15
D. 10
percent of privately owned businesses ever move from the start-up stage to the success stage.
Answers
As little as 6 percent of privately owned businesses ever move from the start-up stage to the success stage. The correct answer would be option A.
More than two thirds of new businesses fail and are unable to provide investors with a profit. There can be many reasons why such a low number of startups become successful. Business founders claim that reasons for failure include running out of money, being in the wrong market, lacking research, poor alliances, inefficient marketing and lacking industry expertise.
Since 2014, several causes of failure have become more common, such as a dearth of market demand. This does not imply that startup ideas are becoming scarce. It illustrates the lack of diversity among founders and investors in terms of culture, geography and socioeconomic status. For example, startups that couldn't adjust to a socially isolated lifestyle were throttled by COVID-19.
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when you should send an email
A. when the subject matter is extremely private
B.when the subject matter is objective and informative
C. when the subject matter is emotional
D. when the subject matter is sensitive in nature
Answers
B. When the subject matter is objective and informative
You should send an email when the subject matter is objective and informative. Hence, Option B. is correct.
Email is a fantastic manner to communicate when the subject matter is objective and informative. A way to communicate between people using the internet and electronic gadgets is via email. Because emails are a fantastic method to discuss and highlight vital information without containing a personal opinion, which is especially critical in a business context, you should send an email when the subject matter is objective and instructive.
Therefore, the correct option is option B.
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what Is margin of safety?
A. Difference between selling price and variable cos
B. difference between contribution margin per unit and fixed cost
C. difference between current sales and break-even sales
Answers
Answer:
Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales
, environmental trends and Ethical trends affect a pharmacy business? I need one whole paragraph for them
Answers
The negative impact of the production of pharmaceutical products on the natural environment is well known. However, this remains largely unregulated, meaning the extremely toxic impact it has on both animals and humans continues with no clear end in sight.
International organisations and the pharmaceutical industry have begun to notice that the detrimental impact pharma products have on the environment on a global scale.Pharmaceutical products enter the environment at various stages of their life-cycle, but particularly during the production phase. One of the main threats is that discharging antibiotics into the environment can promote the natural development of antibiotic-resistant pathogens that are harder to treat. Lord Jim O’Neill noted this trend in his 2016 UK government-funded independent Review on Antimicrobial Resistance.Although it is a global issue, like other environmental issues, pharma pollution more directly and seriously affects those living near production plants whose water and food sources are contaminated with waste pharma products.Health Care Without Harm (HCWH) Europe runs the Safer Pharma campaign to raise awareness of the negative relationship between pharma and the environment and challenge the healthcare industry to clean up its production.The production of both active pharmaceutical ingredients (APIs) and finished dose antibiotics is concentrated in specific locations so the resulting point, source pollution, is in incredibly high concentrations and encourages the development of drug resistance,” says HCWH Europe pharmaceuticals policy officer Dr Adela Maghear. “This practice has a detrimental impact on vulnerable populations living near manufacturing facilities and wastewater treatment plants in these countries.The pollution of pharma products into the environment also adversely affects animals, particularly fish living in contaminated water. For example, a report published in science journal Nature in 2009 noted that ‘many of Europe’s rivers are home to male fish that are ‘intersex’ and so display female sexual characteristics, including female reproductive anatomy. Some males also produce vitellogenin, a protein normally.
which of the following will be true for an economy that is operating at full employment? group of answer choices the rate of unemployment will be zero. the actual rate of unemployment will be equal to the natural rate. the employment/population ratio will be equal to 100 percent. everyone who would like to have a job will be employed.
Answers
The actual rate of unemployment will be the same as the natural rate in a fully employed economy.
The unemployment rate is the same as its natural rate. The full employment rate, according to economists, is reached when the cyclical unemployment rate is equal to zero.
Because there are numerous sorts of unemployment, some of which are inevitable or even required for a functioning labor market, full employment is not the same as zero unemployment.
The five causes of unemployment identified by economists are cyclical, seasonal, structural, frictional, and institutional. All five would have to vanish for the jobless rate to drop to zero. Because of the economy's cyclical booms and busts, cyclical unemployment exists.
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If a lender makes a consumer home loan in violation of the law, the borrower may bring an action within _____ years after the date the violation occurred.
Answers
Answer:
This chapter may be cited as the "South Carolina High-Cost and Consumer Home Loans Act".
HISTORY: 2003 Act No. 42, Section 1, eff January 1, 2004, and applying to loans for which the loan applications were taken on or after that date.
What is the job of a libero in volleyball?
Answers
An investor seeking to recover stock market losses from a CPA firm associated with an initial offering of securities based on an unmodified opinion on financial statements that accompanied a registration statement, must establish that:_________.
A) The audited financial statements contain a false statement or omission of material fact.
B) The CPA firm would have discovered the false statement or omission if it had exercised due care in its examination.
C) The CPA firm did not act in good faith.
D) The investor relied on the financial statements.
Answers
Answer:
A) The audited financial statements contain a false statement or omission of material fact.
Explanation:
When an investor seeking to recover stock market losses from a CPA firm associated with an initial offering of securities based on an unmodified opinion on financial statements that accompanied a registration statement, must establish that the audited financial statements contain a false statement or omission of material fact.
An unmodified opinion on financial statements can be defined as an opinion issued by an auditor stating that there are no material misstatements and this simply implies that the, the financial statement represents a true and fair perspective.
Hence, when an investor seeking to recover stock market losses from a certified public accountant (CPA) firm, he or she must establish that the audited financial statements contain a false statement or omission of material fact in accordance with the public company accounting oversight board (PCAOB).
Project: How Entrepreneurs Improve the Economy
This project will focus on researching different ways that entrepreneurs improve the economy. You will then explore these ways and
explain whether you agree or disagree with how each can improve the economy.
During this project, you'll accomplish the following:
O Objectives
• Research at least five ways that entrepreneurs improve the economy and explain whether you agree or disagree with each.
Directions
Use the Internet to research different ways that entrepreneurs improve the economy. You will need to have at least five ways. Be sure
to include the URL links you used as resources in the space below.
Now that you have completed the research, record your findings in the table below and include the links,
1 Fillin five ways that entrepreneurs improve the economy
Answers
Answer:
time management
make best decision
saving the budget
having ideas
never relaxed
in the context of management, rules refer tomultiple choicea reporting relationship in which an employee receives orders from only one superior.the ability of an individual to act on his own accord without direction from a superior.formal written instructions that specify actions to be taken under different circumstances.the performance gains that result when individuals and departments coordinate their actions.the methodical arrangement of positions to provide the organization with the greatest benefit.
Answers
In the context of management, rules refer to formal written instructions that specify actions to be taken under different circumstances. These rules are put in place to ensure that every individual within an organization is following the same guidelines and procedures, and to provide structure and order within the management system.
By having formal written rules, an organization can ensure that every employee is on the same page and that there is consistency in the actions taken by each individual. This can help with coordination and can ultimately lead to better performance and greater benefits for the organization as a whole.
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Because all other parts of the budget depend on it, if the ______ budget is inaccurate, the rest of the budget will be inaccurate.
Answers
Answer:
Sales budget
Explanation:
Because all other parts of the budget depend on it, if the sales budget is inaccurate, the rest of the budget will be inaccurate.
What is the sales budget?A sales budget is a financial plan that estimates a company’s total revenue in a specific time period. It focuses on two things: the number of products sold and the price at which they are sold to predict how the company will perform.
Sales budgets are important tools to help businesses estimate their overall performance and how much revenue they may make from a certain product. It helps companies forecast sales and maximize the utilization of their resources. A sales budget also serves as a planning tool for organizations to use to set specific standards for achievements. For instance, a company could take its annual sales budget of $1000 and divide it by four to determine the team's quarterly goal of $250.
Organizations can determine if their business is successful by examining how closely they reach their target.
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RKI Instruments borrowed $4,300,000 from a private equity firm for expansion of its facility for manufacturing carbon monoxide monitors. The company repaid the loan after 1 year with a single payment of $5,225,000. What was the interest rate on the loan
Answers
Answer:
21.51%
Explanation:
RKI instruments borrowed $4,300,000 from a private equity firm to expand its facility.
A year after the loan was repaid with a single payment of $5,225,000
Therefore the interest rate on the loan can be calculated as follows
= 5,225,000-4,300,000/4,300,000 × 100
= 925,000/4,300,000 × 100
= 0.2151 × 100
= 21.51%
Hence the interest rate of the loan is 21.51%
Identify four negative effects of economic growth on society/the environment.
Answers
Negative effects of Economic Growth on Society/ The Environment - Noise pollution and lower air quality arising from air pollution and road congestion.
4. What is the Fed's most important monetary policy tool?
Answers
Answer:
Interest on reserves remains the primary tool for influencing the federal funds rate, other market interest rates in turn, and ultimately consumer and business borrowing and spending.
Explanation:
why should we respect the life and culture of all people living in the country ?
Answers
Explanation:
Culture forms our identities and attitudes, and intercultural communication allows us to embrace and sometimes even integrate and learn the language with many other communities to some degree. In modern environment, cultural diversity is becoming extremely significant. We should respect all culture and community.